PHOENIX — The Arizona Legislature is very close to a solution for the $122 million budget hole in the state’s disability services after the House and Senate passed separate bills Wednesday.
The Division of Developmental Disabilities runs out of money in one week, threatening services for nearly 60,000 Arizonans. Without additional funding, the program will not be able to pay claims or offer services until the state’s new budget year starts in July.
The Arizona House passed a funding bill Wednesday night after hours of negotiations behind closed doors between Republicans and Democrats.
“This was very difficult, but it came down to teamwork, and House Republicans and House Democrats working together to get the job done,” state Rep. David Livingston told ABC15 after the vote.
Gov. Katie Hobbs cheered the passage of House Bill 2945, calling it in a statement “an important first step towards delivering critical funding to continue vital services for Arizonans with Down syndrome, autism, cerebral palsy, and other developmental disabilities.”
HB 2945 now moves on to the Senate for approval. Advocates and members of the DDD community tell ABC15 they support the bill and urge the Senate to approve it on Thursday.
Livingston, who chairs the House Appropriations panel and leads budget talks, said he was relieved and satisfied with HB 2945, which passed 48-11.
“I think the citizens of Arizona won today,” he said.
Senate bill passes earlier
That victory came after Hobbs dismissed a bill passed by the Senate earlier in the day as “dead on arrival.” The legislation, Senate Bill 1734, passed midday Wednesday, largely on party lines.
“We just have to get it done,” state Sen. David Farnsworth said before voting for the bill. “We need to get it done quickly.”
Families who depend on DDD services say their community needs a resolution.
"Our caregivers are really stressed out,” said Michele Thorne, CEO of Care 4 the Caregivers and mother of two. “We're really tired. We have been here way more than we need to be.”
Thorne, whose son receives DDD services, was hopeful after the Senate passed its bill.
“I think that we did see some good changes,” she said. “I think they're moving in a positive direction.”
In the Senate, Democrats objected to pulling some money from a state housing fund and changes to the Medicaid waiver process, all things removed from the bill passed by the House.
“The taxpayers should not have to be put in a position where we're robbing Peter to pay Paul, putting crucial services like the Housing Trust Fund in jeopardy,” state Sen. Ortiz said during the Senate vote. “And all people on AHCCCS should not have to accept what the majority is trying to do with this waiver program here, which could eventually jeopardize every person on AHCCCS’ health care.”
How the House bill differs from the Senate bill
The House bill pulls all of the supplemental funding for DDD from the prescription drug rebates fund, as Hobbs and Democrats wanted. It adjusts the proposed requirement for legislative approval of Medicaid waivers, except in certain cases.
Like the Senate bill, HB 2945 no longer cuts the number of weekly hours for the Parents as Paid Caregivers Program.
“We know that there's no direct care workers staff in Arizona who could actually provide the services to our children, so I was happy to see that change,” Thorne said.
The House bill also adds some reforms to the parent caregiver program and funds a special audit of it.
“This deal ensures critical services for disabled Arizonans will continue, delivers reasonable guardrails for the Parents as Paid Caregivers Program, and protects funding to respond to Arizonans’ housing needs,” Hobbs said in a statement Wednesday night. “It’s time for the Senate to get this negotiated bill on my desk to protect services for these families.”
Lawmakers now must tackle the state budget. The Legislature is supposed to pass a budget within 100 days – a mark they passed on Tuesday.
But HB 2945 offers some hope, Livingston said.
“One of the things it shows is, the governor can rely on the House and the House Republicans and House Democrats to work together to get things done,” he said.
